Oyster Oil and Gas Ltd. Increases Size of Previously Announced Private Placement To CDN$1,500,000

Vancouver, June 6, 2017 - Oyster Oil and Gas Ltd. ("Oyster" or the "Company") is pleased to announce that due to strong demand the Company has increased the size of its previously announced non-brokered private placement of units (the "Units") from aggregate gross proceeds of up to CDN$1,000,000 to up to CDN$1,500,000 (the "Financing").

Pursuant to the Financing, the Company will issue an aggregate of up to 3,000,000 Units at a price of CDN$0.50 per Unit. Each Unit will consist of one common share of the Company (each, a "Common Share") and one transferable common share purchase warrant (each, a "Warrant"). Each Warrant shall entitle the holder thereof to acquire one Common Share at a price of CDN$0.55 for a period of two years from closing of the Financing. The securities issued in connection with the Financing will be subject to a statutory hold period in accordance with applicable securities legislation.

The closing of the Financing is expected to occur by no later than July 13, 2017, and remains subject to certain closing conditions, including, but not limited to, the receipt of applicable regulatory approvals and the completion of required regulatory filings with the TSX Venture Exchange (the "TSXV"). The Company intends to use the net proceeds of the Financing for general corporate and working capital purposes.


About Oyster Oil and Gas Ltd.

Oyster is an upstream oil and gas company with a focus on Eastern Africa. Oyster holds production sharing contracts interests with the Government of Djibouti and the Government of Madagascar. Oyster holds 100% working interest and is the operator of four blocks comprising approximately 3.5 million acres onshore and offshore in Djibouti; and holds a 100% working interest and is the operator of an onshore block located in northwest Madagascar covering approximately 2.8 million acres.



For further information please contact:

Oyster Oil and Gas Ltd.
Emily Davis, Corporate Secretary
Tel: (604) 628-5616
Fax: (604) 662-7950


This news release contains statements about the Company's expectations regarding the completion of the Financing that are forward- looking in nature and, as a result, are subject to certain risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements and there can be no assurance that such expectations will prove to be correct. Factors that could cause the actual results to differ materially from those in forward-looking statements include failure to complete the Financing for any reason whatsoever, including failure to obtain TSXV acceptance. The forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward- looking statements or information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

This news release does not constitute and the subject matter hereof is not, an offer for sale or a solicitation of an offer to buy, in the United States or to any "U.S Person" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "1933 Act")) of any equity or other securities of the Corporation. The securities of the Corporation have not been registered under the 1933 Act and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.